Underground Sampling at El Jicaro Property Returns 5.5 Metres Grading 12.33 g/t Gold and 25.6 g/t Silver
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February 8, 2012 NEWS RELEASE - #12-03 TSX- V: GRR
UNDERGROUND SAMPLING AT EL JICARO PROPERTY RETURNS 5.5 METRES GRADING 12.33 G/T GOLD AND 25.6 G/T SILVER
Golden Reign Resources Ltd. (the "Company" or "Golden Reign")(TSX-V: GRR) is pleased to report the results from preliminary sampling work completed on its newly acquired El Jicaro Gold Property (the “Property”), Nueva Segovia, Nicaragua.
Golden Reign purchased the Property on the basis of historical data combined with the results from its successful 2011 major trenching program, which exposed numerous highly mineralized southwest trending structures within a distance of 1 kilometre. Showings and historical workings within the El Jicaro Property lie along strike of the mineralized structures exposed by trenching.
The El Jicaro Property has no fewer than 16 veins that were exploited by historical mines and workings, which were partially mined by the Spaniards in the late 1700’s and then by larger scale operations until 1915. A reconnaissance sampling program by Golden Reign tested nine of these prospects, including:
Eureka Mine
- comprised at least three adits, mostly collapsed
- a continuous 5.5 metre underground channel sample from the partially collapsed Eureka Tunnel #2 returned 12.33 g/t gold and 25.6 g/t silver
- grab samples from the 7.5 metre wide quartz vein in Eureka Tunnel #2 returned between 1.2 to 10.77 g/t gold
El Golfo Mine
- comprised of at least four adits, mostly collapsed
- El Golfo Tunnel #1 – two representative grab samples from a sizable mine dump returned 10.34 g/t gold and 12.8 g/t silver and 3.66 g/t gold and 7.2 g/t silver
Jacinto Vein #1
- a representative grab sample from a sizable mine dump returned 26.53 g/t gold and 15.5 g/t silver
Comprehensive mapping, prospecting and trenching programs are planned for 2012 to identify drill ready targets. In addition, the Company plans to re-open several caved adits for further underground sampling.
Situated adjacent and to the south of the Company’s flagship San Albino-Murra Gold Property, the El Jicaro Property covers an area of 5,071 hectares (51 km2), nearly doubling the Company’s current land package to an aggregate 13,771 hectares (138 km2). Numerous historical mines and workings exist along a structural corridor approximately 3 kilometres wide by 20 kilometres long which spans the entirety of the Company’s land package.
Aggregate costs incurred to purchase and transfer title of the mining exploration and exploitation license were USD$150,000. The El Jicaro Concession license is valid for a period of twenty-five years, until September 28, 2033. The Concession was acquired from a third party, individual Nicaraguan title holder.
| Prospect Name | Sample # | Description | Au g/t | Ag g/t | ||||
|---|---|---|---|---|---|---|---|---|
| El Golfo Tunnel #1 | 76504 | Representative sample from mine dump (50m x 6m x 15m), quartz-adularia material with galena, sphalerite, aspy and py. | 3.66 | 7.2 | ||||
| El Golfo Tunnel #1 | 76505 | Same | 10.34 | 12.8 | ||||
| El Golfo Tunnel #2 | 76506 | Float sample from mine dump, quartz vein material with sulphides | 2.76 | 2.8 | ||||
| Los Centeno - Tunnel #5 | 76692 | Representative sample from mine dump (15m x 6m x 10m). Quartz and schist material. | 10.09 | 3.8 | ||||
| Los Centeno Tunnel - Mine Dump | 173063 | Representative sample from mine dump, quartz material with Fe-oxide and possible specs of azurite and pyrite crystals. | 13.21 | 21.8 | ||||
| Los Centeno vein | 173064 | 1 metre channel sample from quartz vein containing Fe- oxides and possible azurite. | 13.69 | 5.2 | ||||
| Los Centeno vein | 173065 | 1 metre channel sample from quartz vein containing Fe- oxides and possible azurite. | 4.02 | 0.5 | ||||
| Los Centeno vein #1 | 76691 | 1.5 metre wide channel sample collected from quartz vein containing sulphides. Vein appear to strike in same direction as Los Centeno - Tunnel #5. | 9.59 | 5.8 | ||||
| Los Centeno vein #2 | 76694 | Quartz vein situated 100 metres apart from Tunnel #5, approx. 1.5 metres wide, contains sulphides and Fe-oxide. Sample 1 metre. | 5.31 | 3.8 | ||||
| Mine Dump#1- (El Limon) | 76695 | Mine dump situated 400 metres SW from old mine El Limon. Quartz material with sulphides and Fe-oxides. | 2.76 | 3.6 | ||||
| Jacinto vein #1 - Pits/ Mine dump | 76828 | Representative sample from mine dump (20m x 6m x 10m) within the area of numerous historical workings - pits. Quartz vein material containing sulphides (galena, scorodite, py). | 26.53 | 15.5 | ||||
| Jacinto vein #1 - Pits/ Mine dump | 76829 | Representative sample from mine dump (20m x 6m x 10m) within the area of numerous historical workings - pits. Quartz vein material containing sulphides (galena, scorodite, py). | 3.04 | 5.0 | ||||
| El Jicarito Tunnel # 1 - Mine dump | 76833 | Representative sample from mine dump (20m x 10m x 5m). Quartz-adulara material containing galena, scorodite and pyrite. | 6.57 | 15.6 | ||||
| Eureka Tunnel#2 | 76844 | Tunnel # 2, Eureka, partially collapsed. Quartz vein up to 7.5 metres wide, vertical sample on SW wall of tunnel, galena, aspy, py, visible gold. 1.5 metre channel sample | 10.77 | 0.4 | ||||
| Eureka Tunnel#2 | 76845 | Same, 1.5 metre channel sample | 7.01 | 0.6 | ||||
| Eureka Tunnel#2 | 76847 | Same , 1.5 metre channel sample | 4.98 | 0.7 | ||||
| Eureka Tunnel#2 | 76849 | Same, 2.0 metre channel sample | 7.51 | 0.9 | ||||
| Eureka Tunnel#2 | 72303 | Same, 1.0 metre channel sample | 2.82 | 8.9 | ||||
| Eureka Tunnel#2 | 72305 | Sample collected from the ceiling of tunnel. Qtz vein with sulphides. 2.0 metre channel sample | 1.20 | 9.9 | ||||
| Continuous 5.5 metre channel sample collected in the | ||||||||
| Eureka Tunnel#2 | gallery (open stope). Quartz vein contains galena, aspy, | 12.33 | 25.6 | |||||
| py, Fe-oxides, visible gold | ||||||||
| including | 72314 | 1.0 metre channel sample | 7.52 | 25.2 | ||||
| including | 72315 | 1.5 metre channel sample | 20.29 | 45.0 | ||||
| including | 72316 | 1.5 metre channel sample | 12.98 | 17.5 | ||||
| including | 72317 | 1.5 metre channel sample | 6.94 | 14.7 | ||||
| Eureka Tunnel#2 | 72322 | Quartz vein in gallery-NW wall,1.0 metre channel sample | 5.82 | 15.0 |
Qualified Person
John M. Kowalchuk, P.Geo, a geologist and qualified person (as defined under NI 43-101) has read and approved the technical information contained in this news release.
On behalf of the Board,
“Kim Evans”
Kim Evans, CGA President & CEO
About Golden Reign:
Golden Reign Resources Ltd. is a publicly listed (TSX-V: GRR) mineral exploration company engaged in exploring the San Albino-Murra Property and the El Jicaro Property, both of which are located in Nueva Segovia, Nicaragua.
The Company’s land package comprises 13,771 hectares (138 km2) of highly prospective ground. Hundreds of historical mines and workings exist along a structural corridor approximately 3 kilometres wide by 20 kilometres long which spans the entirety of the Company’s land package.
Nicaragua, a mining-friendly jurisdiction, is situated in the Central American Gold Belt, which extends from Costa Rica in the south to Guatemala in the north. Within this prolific gold belt, estimates of historical production total more than 20 million ounces.
For additional information please visit our website at www.goldenreign.com and SEDAR www.sedar.com.
Forward-Looking Statements: Some of the statements contained herein may be forward-looking statements which involve known and unknown risks and uncertainties. Such forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward- looking statements, including, without limitation, risks and uncertainties relating to political risks involving the Company’s exploration and development of mineral properties interests, the inherent uncertainty of cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, the inability or failure to obtain adequate financing on a timely basis and other risks and uncertainties. Such information contained herein represents management’s best judgment as of the date hereof, based on information currently available.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.